Collecting recurring payments from clients and customers can be a time consuming & costly process for businesses. This is especially true for many new start-ups, where the high percentages charged by many merchant banking systems can directly impact the costs of your product or service that you charge to your customers.
What is GoCardless?
GoCardless are a British based company that give merchants a simple, automated way to collect payments, through an app within their billing or CRM software which is very cost effective.
Why do we use them?
Here at RJF Accountants, we needed a solution to our payment collection needs and GoCardless was the company we turned to. They solved our recurring payment problem. Not only are their fees extremely competitive, but they have a seamless integration with Xero. This does three things:
- It allows customers to create a direct debit mandate by embedding a button within the invoice itself.
- Once the client creates a mandate, when payment is made, GoCardless will automatically reconcile their payment against the outstanding invoice from within our Xero account. Saving us time and headache.
- Saves you time in having to settle invoices
This definitely gets two thumbs up from us!
Duncan Barrigan of GoCardless has produced an interesting article about the benefits of using their system for the processing of payments for SaaP (Software as a Product).
You can find the article here and is worth a read if you are looking in to payment service providers and payment solutions.